Nick v. Dept. Alcoholic Beverage Control
Annotate this CasePetitioners Adam Nick and Sherry Nick (collectively, Nick) challenged respondent Department of Alcoholic Beverage Control’s decision to grant real party in interest 7-Eleven, Inc. a license to sell beer and wine at its store located in the City of Lake Forest. The City determined issuing the license would serve public convenience or necessity and the Department relied on that determination in deciding to grant 7-Eleven’s application. Nick argued the Court of Appeal should have overturned the Department’s decision because the Department improperly “ceded” its exclusive constitutional authority by treating the City’s public convenience or necessity determination as binding and conclusive, rather than independently making its own determination. Nick also argued the City’s public convenience or necessity determination was void and ineffective. Furthermore, Nick argued respondent Alcoholic Beverage Control Appeals Board found 7-Eleven misrepresented a material fact by failing to disclose a franchisee held a “hidden ownership” interest in the store at issue. The Court of Appeal concluded that Nick's first two contentions failed because Nick misinterpreted the governing legal authorities and standards. With regard to the hidden ownership issue: because Nick failed to raise it as a basis for denying 7-Eleven’s application during the administrative hearing before the Department, the Appeals Board made no such finding. The Court affirmed the Department’s and the Appeals Board’s decisions.
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